Cat bond fund news

Plenum Investments, the Zurich based specialist catastrophe bond and insurance-linked securities (ILS) investment manager, has surpassed US $1 billion of assets under management for the first time, with its catastrophe bond strategies benefiting from investor demand.

While catastrophe bond funds might have similar return expectation metrics, the tail-risk inherent in each cat bond fund strategy can “differ tremendously,” depending on the underlying portfolio construction, a new study from Plenum Investments shows.

SCOR Investment Partners has announced the opening of a new subsidiary based in Switzerland to provide closer support to Swiss institutional investor clients and develop new opportunities in the country.

Schroders Capital has launched a new catastrophe bond fund that has been designed as an offering for US investors, raising $70 million from two clients earlier this month for the Schroders Capital Coda Fund.

In advance of the end of the quarter, Artemis can now report that issuance of property catastrophe bonds in the first-half of 2023 will close out June at an all-time high for the period of almost $9.7 billion, which beats the full-year total from 2022 and sets a new record for any half-year of cat […]

We’ve learned that the European Commission has now directed financial regulator the European Securities & Markets Authority (ESMA) to study eligible assets for UCITS investment fund strategies, to ensure their suitability, with catastrophe bonds explicitly mentioned.

Catastrophe bond funds in the UCITS format are rapidly approaching a combined $10 billion of assets under management (AUM), with another $372 million added in just the last two months.

Catastrophe bond funds in the UCITS format are averaging approximately 6.20% returns year-to-date in 2023, while over a 12-month horizon the average return is now 3.57%, even accounting for major hurricane Ian’s losses in Florida.

The returns possible in insurance-linked securities (ILS) investments remains at a near record, as the Eurekahedge ILS Advisers Index continues to track at its highest performance level since 2007.

Insurance-linked securities (ILS) fund managers are beginning to report growing interest from institutional investors, analysts from KBW reported from a Bermuda visit this week.